Management Consulting Group PLC Acquisition of Chinese consulting business
Management Consulting Group PLC ("MCG or "the Group"), the international professional services group, announces today that it has acquired a retail consulting business operating in China.
MCG has acquired Vertical Retail Consulting Limited and Vertical Retail Consulting Hong Kong Limited from Rick Keller and Nathan Burkland. Cash consideration of US$2.25 million was paid on completion of the transaction.
The acquired business operates in mainland China from a base in Shanghai, in Hong Kong and elsewhere in Asia. It provides management consulting services to clients operating in the retail and consumer goods sector. The business serves both well known international brands already active in or in the process of entering the Chinese market, and local retailers which are expanding rapidly in terms of store and brand development. It has been established for approximately three years and has undertaken more than seventy client projects during that time. The business is expected to generate revenues in 2011 of approximately US$4 million and has a strong order book and sales pipeline which extends into 2012.
Rick Keller and Nathan Burkland will continue to work in the business, which is well placed to expand as part of the global retail and consumer goods consulting practice of Kurt Salmon. The market for management consulting services in China is expected to continue to grow strongly, in the retail sector in particular.
Further consideration of up to US$1.5 million in cash and 1,350,000 MCG ordinary shares may be payable to the vendors in the event that the acquired business achieves certain performance targets in the period up to 2014.
Nick Stagg, MCG's CEO commented:
"China is an important and fast growing market for management consulting services. I am pleased that we have strengthened Kurt Salmon's global position in the retail consulting sector with this acquisition. I welcome our new colleagues to Kurt Salmon and MCG and I look forward to building on the exciting opportunities to serve our clients in China and elsewhere."